Exercise of a Currency Futures Option Results in

question 74

Multiple Choice

Exercise of a currency futures option results in

• A)a long futures position for the call buyer or put writer.
• B)a short futures position for the call buyer or put writer.
• C)a long futures position for the put buyer or call writer.
• D)a short futures position for the call buyer or put buyer.

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Definitions:

English Parliament

The supreme legislative body in the United Kingdom, made up of the House of Commons, the House of Lords, and the Sovereign.

Act for the Prevention of Frauds and Perjuries

Historical legislation which aimed at reducing fraud and perjury in legal agreements, emphasizing the importance of written contracts.

Promissory Estoppel

The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract.

Negligent Misrepresentation

A false statement of material fact made by a party who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.